Columbus, Ohio consider taxing, regulating the likes of Airbnb

Once, staying overnight while traveling meant paying for a hotel room — and the various taxes included in the tab.

In recent years, short-term home- and apartment-rental services such as Airbnb have emerged, similar to Uber in the transportation sector.

The rentals aren't necessarily cheaper than a hotel, but they appeal to a growing number of travelers because they often are roomier and more homey.

Now, a drive is under way in Columbus to regulate those who are selling lodging without operating under the same rules as hotels. The Ohio Hotel & Lodging Association has been working with Columbus City Council members on legislation that could require those in the rental business to register with the city, report rental data and pay the same local taxes that traditional hotels must collect and remit.

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"We're really trying to find a manageable way to balance the concerns of residents and businesses, and to address minimum health and safety issues," said Councilman Michael Stinziano, a Democrat, who has taken the lead on studying the subject.

Stinziano added that any legislation would not include a ban on short-term rentals, as has been imposed by some U.S. communities. Public meetings and consultations with affected groups are planned, he said, with the legislation expected to be proposed in the fall.

Such efforts have been going on across the country, mirroring earlier efforts to regulate car services such as Uber and Lyft.

According to a June report from NoiseAware and Rented.com — sites serving those who rent their homes — short-term rentals "are veritably banned" in 15 U.S. cities, and two dozen others have adopted "strict regulations." Popular vacation spots such as Los Angeles, Honolulu and several Florida cities are listed as having the strictest regulations.

There are occasional horror stories about bad actors listing their properties on Airbnb and then discriminating against or even assaulting renters.

For the most part, the concern has been not about such incidents but about rentals' failure to pay taxes and their propensity — in some communities — to change the character and safety of quiet residential neighborhoods.

Airbnb's self-reported numbers show that Columbus had the second-most rentals among Ohio metropolitan areas in 2016, behind Cleveland.

The company said that Columbus hosts received $3.6 million in income from 29,000 guest stays last year, a number that's relatively small but fast-growing compared with top U.S. cities. Columbus rentals tend to spike around Ohio State football games and big special events.

Stinziano said he started looking into the issue after being approached by two residents of a quiet residential area concerned about a neighboring house that was being frequently rented out.

He said addressing "minimum health and safety" issues is a primary concern. One point being considered is to require proof of adequate liability coverage.

Joe Savarise, president of the hotel association, said his organization is not interested in driving out short-term rental activity but wants to see a "level playing field" that would require such rentals to be taxed, regulated and inspected just as hotels are.

"We're definitely not trying to ban this type of rental," he said. "We want to ensure guest health and safety and to protect neighbors and neighborhoods."

Savarise said that recent research by Penn State University and commercial real-estate firm CBRE has found that a large and increasing share of the short-term-rental business consists of professional operators who essentially are in the vacation-rental business full time.

"It's become more commercialized. ... It needs to be treated like the business that it is," he said.

All lodging operators benefit from tourism marketing and city services that are funded by local taxes, Savarise added, which all should have to pay.

Legislation at the state level also has been discussed but isn't as far along.

Mike Duffey, a Republican state representative from Worthington who sponsored the state's car-service legislation two years ago, said that short-term-rental regulation "has been a topic for a couple of sessions now" in the legislature, focusing largely on how such rentals should be taxed.

As for Airbnb, Benjamin Breit, a spokesman for the company, said in a statement that "we fully support fair, reasonable home-sharing regulations that allow our hosts to continue supporting the Columbus economy. We have been engaged with city officials regarding a voluntary tax agreement that would allow us to collect and remit local taxes on behalf of our hosts, which would infuse new revenue for Columbus."

Breit said the company worked out such a voluntary collect-and-remit tax agreement recently with Cuyahoga County and the city of Cleveland.